#EURGBP @ 0.88332 attracts fresh buying on Tuesday and recovers further from over a two-week low. (Pivot Orderbook analysis)

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• EUR/GBP attracts fresh buying on Tuesday and recovers further from over a two-week low.
• Dovish BoE expectations weigh on the British Pound and remain supportive of the move.
• The recent hawkish ECB rhetoric underpins the Euro and supports prospects for further gains.

The pair currently trades last at 0.88332.

The previous day high was 0.8824 while the previous day low was 0.8769. The daily 38.2% Fib levels comes at 0.8803, expected to provide support. Similarly, the daily 61.8% fib level is at 0.879, expected to provide support.

The EUR/GBP cross regains positive traction following an early dip to sub-0.8800 levels and moves away from over a two-week low touched the previous day. The cross sticks to its modest intraday gains through the early European session and is currently placed near the top end of its daily range, around the 0.8825-0.8835 region.

The British Pound’s relative underperformance comes amid a bleak outlook for the UK economy, which has been fueling expectations that the Bank of England (BoE) is nearing the end of the current rate-hiking cycle. Apart from this, a modest pickup in the US Dollar demand is seen weighing on the Sterling and lending some support to the EUR/GBP cross.

The shared currency, on the other hand, benefits from hawkish European Central Bank (ECB) rhetoric. In fact, ECB Governing Council member Francois Villeroy de Galhau said last Thursday that it would be desirable to reach the right terminal rate by next summer. Furthermore, ECB expects wage growth to be very strong over the next few quarters.

In the absence of any major market-moving economic releases, either from the UK or the Eurozone, the aforementioned bullish fundamental backdrop supports prospects for additional gains. That said, any subsequent move up might continue to confront stiff resistance and is more likely to remain capped near the 0.8865-0.8875 heavy supply zone.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8832 at the time of writing. Pair opened at 0.881 and is trading with a change of 0.25 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8778, 50 SMA 0.8711, 100 SMA @ 0.8703 and 200 SMA @ 0.8588.

The previous day high was 0.8824 while the previous day low was 0.8769. The daily 38.2% Fib levels comes at 0.8803, expected to provide support. Similarly, the daily 61.8% fib level is at 0.879, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8778, 0.8746, 0.8724
• Pivot resistance is noted at 0.8833, 0.8856, 0.8888

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